Ch. 756

1997 LAWS OF MARYLAND

(iii) 1. For each full-time or part-time employee employed by a
qualified business entity during the credit year, if the employee is a disabled individual
within the meaning of § 21-401 of the Education Article, the credit earned under this
section equals the lesser of $1,500 or 5% of the wages paid to the employee, whether or
not the individual is a qualified employee.

2. Each employee for whom the credit under this subparagraph
is claimed shall be certified as a disabled individual by the Department in cooperation
with the appropriate State agencies.

(3)     The credit earned under paragraph (2) of this subsection shall be
allowed ratably, with one-half of the credit amount allowed annually for 2 years
beginning with the credit year.                                                                     

(4)     The credit earned by a qualified business entity under this subtitle may
not exceed $1,000,000 for any credit year.

(5)     The same credit cannot be applied more than once against different
taxes by the same taxpayer.                                                                           

(6)     (i) To be certified as a qualified business entity, a business entity shall
submit the following to the Department in accordance with regulations adopted by the
Department:

1.       The effective date of the start-up or expansion;

2.       The number of full-time employees prior to the start-up or
expansion and the payroll of the existing employees;

3.       The number of qualified positions created, qualified
employees hired, and the payroll of those employees; and

4.       Any other information that the Department requires by
regulation.

(ii) The Department may require any information required under this
paragraph to be verified by an independent auditor selected by the business entity.

(7)     A qualified business entity must obtain, and submit to the appropriate
State agency with the tax return on which the credit is claimed, certification from the
Department that the entity has met the requirements of this section and is eligible for the
credit.

(d) (1) If the credit allowed under this section in any taxable year, exceeds the
total tax otherwise due from the qualified business entity for that taxable year, the
qualified business entity may apply the excess as a credit for succeeding taxable years
until the earlier of:

(i) The full amount of the excess is used; or

(ii) The expiration of the 5th taxable year from the credit year.

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